08 Sep, 2017

Mcdonalds Franchise Disclosure Document

McDonalds franchise disclosure document With over 30,000 locations and fifty years in the burger business, the McDonalds franchise disclosure document brand is the most recognized and successful franchise in the world. Not surprisingly, before considering anything else many would-be franchise owners ask themselves: How much does a McDonalds franchise cost and how can I buy a McDonalds franchise? They hear it only costs, 000 to get a Mighty Mac franchise, an investment that’s quite within their franchise affordability range. The McDonalds Franchise Fee As with most things in life, a tiny information is a hazardous thing. While it’s true McDonalds charges a, 000 franchise fee, this is only the initial franchise fee for licensing rights – the upfront fee charged to join the network. There’s a LOT more financial commitment and cost involved to buy a McDonalds franchise after that. On top of the investment, there are other qualifications besides having the money. Different McDonalds Franchise Ownership Options According to McDonalds, there are two ways to buy a McDonalds franchise and enter their system. The first and most frequently used method is purchasing an existing restaurant, either one operated directly by McDonalds or from a McDonalds franchise disclosure document owner/operator. The second, infrequently used way is obtaining franchise rights for a new restaurant. Let’s think about these in reverse order, since McDonalds provides few financial details on the first, most frequently used method. Buying A New McDonalds Franchise For franchise licensing rights to a new McDonalds, the company charges its standard ,000 initial franchise fee, except if the franchise is for a McDonalds in a gas station or convenience store, the fee is reduced to ,500. There is also a reduced franchise fee for McDonalds Satellites located in universities, hospitals, etc. The other cost categories for a new McDonalds franchise include real estate, signage, seats, equipment, decor, opening inventory, training and working capital. These are broken down in Item 7 of the McDonalds FDD. For a Satellite McDonalds, the range is 8,375 to 8,400; for a McDonalds located in a gas station or convenience store, the range is 0,750 to .2 million. The standard, new McDonalds restaurant clocks in with a range of million to .8 million. The factors impacting new restaurant costs are: size of the McDonalds restaurant facility, area of the country, pre-opening expenses, inventory, and selection of kitchen equipment, signage, and style of decor and landscaping, McDonalds franchise disclosure document. A detailed breakdown of the initial investment costs into discrete categories, including a working capital component, is provided in the McDonalds FDD Franchise Disclosure Document which can be obtained at the Franchise Foundations website. Owner/operators must pay forty percent (40%) of the total cost from liquid, individualized assets and might finance the remainder from traditional lending sources.